Related questions
Calculates the Dupont formula and presents reasons that justify the company's profitability and motivate capital investment.
|
|
2018 |
2019 |
|
Cash |
$63,000 |
$201,000 |
|
Accounts Receivable |
199,000 |
305,000 |
|
Marketable Securities |
81,000 |
42,000 |
|
Inventories |
441,000 |
455,000 |
|
Prepaids |
5,000 |
9,000 |
|
Total Current Assets |
789,000 |
1,012,000 |
|
Property, Plant, and Equipment, net |
858,000 |
858,000 |
|
Total Assets |
$1,647,000 |
$1,870,000 |
|
|
|
|
|
Account Payable |
$150,000 |
$100,000 |
|
Accruals |
101,000 |
95,000 |
|
Total Current Liabilities |
$251,000 |
$195,000 |
|
Bonds Payable |
405,000 |
575,000 |
|
Total Liabilities |
656,000 |
770,000 |
|
|
|
|
|
Common Stocks |
700,000 |
700,000 |
|
|
291,000 |
400,000 |
|
Total |
991,000 |
1,100,000 |
|
Total Liabilities & Equity |
$1,647,000 |
$1,870,000 |
|
Income Statement |
2018 |
2019 |
|
Sales |
$1,855,000 |
$2,150,000 |
|
Cost of Goods Sold |
823,000 |
985,000 |
|
Gross Profit |
1,032,000 |
1,165,000 |
|
Selling, General & Admin. Exp. (SG&A) |
520,000 |
438,000 |
|
|
75,000 |
150,000 |
|
Earnings before Interest and Taxes (EBIT) |
437,000 |
577,000 |
|
Interest Expense |
38,000 |
45,000 |
|
Earnings before Taxes (EBT) |
399,000 |
532,000 |
|
Taxes (35%) |
139,650 |
186,200 |
|
Net Income |
$259,350 |
$345,800 |
|
Datos por acción |
2018 |
2019 |
|
Earning per Share (EPS) |
$1.25 |
$3.00 |
|
Cash Dividends |
$1.15 |
$2.10 |
|
Market Share (Price) |
$8.00 |
$11.00 |
|
Ratio Price/Earning (P/E) |
15.20 veces |
8.03 veces |
|
Outstanding Shares |
25,000 |
25,000 |
|
Razones financieras de la industria |
2019 |
|
Current Ratio |
8.3 veces |
|
Quick Ratio (Acid Test) |
8.1 veces |
|
Inventory Turnover Ratio |
7 |
|
Days Sales Outstanding (DSO) |
30 días |
|
Assets Turnover Ratio |
12 veces |
|
|
8.1 |
|
|
17.25% |
|
|
15.5% |
|
Profit Margin |
3.3% |
|
Debt/Equity Ratio |
50% |
|
Price /Earning Ratio (P/E) |
5.1 veces |
Dupont analysis measures overall financial position of company. It bring together net profit margin which measures the profitability of company on sale, with assets turnover ratio which measures assets efficiency and equity multiplier which measures financial leverage. The formula is
ROE = net profit margin*total assets turnover*equity multiplier
by solving this we get
ROE =net profit/equity
Step by stepSolved in 3 steps
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